Rompetrol’s distribution division becomes profitable, refineries post losses

Rompetrol is controlled by Kazakh state-owned KazMunaiGas. According to the financial report sent to the Bucharest Stock Exchange (BVB), where the company is listed, the distribution segment posted $8.1 million in net profit, compared to $13.8 million in losses in 2007. However, this result did not compensate for the $86.4 mln in losses registered by the group’s refineries and $39.8 mln in losses posted by the petrochemical division. In 2006, this division registered a net profit worth $6.6 mln.

In spite of the negative net result, the petrochemical division posted the most significant increase in turnover, 72 percent higher year-on-year, up to $264 mln. Turnover for distribution amounted to $1.8 billion, 35 percent higher year-on-year, and $2.2 bln for refineries, 16 percent higher on 2006.

The group said profits registered for distribution are due to a strategy to attract new clients, expansion of the distribution network, and going into rural areas.
By the end of 2007, Rompetrol had 78 mobile gas stations, with individuals and small companies in towns or villages as clients, the report says. The group’s distribution network is supplying some 400 gas stations, of which 115 gas stations are owned by Rompetrol, and has a 23-25 percent market share.

Rompetrol is the second-largest player on the local market. Petrom, owned by Austrian OMV group, is market leader. Another major company, LukOil Romania, also has a significant share of the local market.